A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens’ full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.  A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower.

How do you find an agent that is truly qualified?  There are three agent designations recognized on a national basis that your chosen agent should have at least one of.

Certified Distress Property Expert (CDPE)

One of the first designations available in the field, CDPE has reached the milestone of 40,000 real estate professionals trained in foreclosure avoidance tools and strategies through the Certified Distressed Property Expert (CDPE) Designation course. CDPE is the fastest-growing independent designation in real estate industry history.

The CDPE designation is administered by the Charfen Institute, which educates and trains real estate professionals and small business owners to find opportunities in chaos – either by providing solutions to the foreclosure crisis or empowering entrepreneurs with strategies to embrace their companies’ full potential.

Short Sale and Foreclosure Resource Certification (SFR)

This is the designation offered by the National Association of Realtors (NAR). The SFR Certification is NAR’s short sale training program developed and continuously updated by industry leaders. The training covers both the seller and buyer side of the short sale transaction. Designed to prepare the agents for the short sale process from the first meeting with the seller through the marketing, contract writing and submission of the short sale package it has prepared over 50,000 REALTORS^® across the country to successfully navigate the distressed property waters.

Short Sale Certified (SSC)

A newer entry into the field, the Short Sale Certified designation (SSC) focuses on local laws and trends in the agent’s footprint. The course was developed by Brandon Brittingham, a top producing agent who has personally completed several hundred short sales, and Gee Dunsten, a former national CRS president who has instructed and written short sale courses all over the country and is considered an industry expert.

SSC has just announced an alliance with the Leading Real Estate Companies of the World to offer short sale training to the 100,000+ agents in the network. This will include live training as well as distance learning.

John R. Wood Realtors is currently a member of Leading Real Estate Companies of the World and has a number of agents with designations to assist you in your short sale situation.

To find a John R. Wood agent who can assist you, click HERE.

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

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The average price of homes sold increased significantly rising 3.6 percent from April 2011 to April 2012.

THe May 10th REAL Trends Housing Market Report showed that the combination of new and existing home sales in April 2012 continued to strengthen from the prior year.  The annualized rate of the combination of new and existing home sales increased to 4.86 million from the 4.37 million recorded in April 2011.

The average price of homes sold in April 2012 was up 3.6 percent from the average price of homes sold in April 2011 marking the best price results on home sales in the last nine months.

Housing unit sales for April 2012 were up 20.0 percent in the Midwest, the strongest showing in the country for the third consecutive month.  The next highest region was the South where unit sales were up 12.4 percent, the Northeast increased by 12.1 percent and the West region saw an increase of 3.0 percent for the same period.

Click HERE to read the full reoprt.

Are you ready to buy or sell in Southwest Florida?

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The Market Report April 2012 will give you a complete overview of Sales, Pended Sales and Listings in the Naples, Bonita Springs and Estero Markets for April 2012.

The Neighborhood Snapshot April 2012 will give you up-to-the-minute information about the most exclusive and popular neighborhoods in the Naples, Bonita Springs and Estero Markets for April 2012.

Although many winter residents have left for the summer, and traffic is a bit lighter, the market continues to be active.  Pended sales for the first half of May are ahead of last year, and all price segments remain active.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

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The other top 5 also include:

Miami, FL

Orlando, FL

Boise City, ID

Naples, FL

Naples shot into the #5 position on the Realtor.com  Turnaround Town report in the first quarter of 2012, up two spots from #7 in Q4  2011, thanks to the strong signs of a recovering market. In Q1 2012, median list  prices in Naples jumped 14.34% on a year-over-year quarterly basis — the fifth  best in the nation. Plus, for sale inventory in Naples dropped by -34.16% from  the first quarter 2012 compared to a year ago. Another positive sign — the local  housing market is moving 23.49% faster in Q1 2012 compared with a year ago, so  buyers are definitely moving faster. Combined positive market conditions with a  8.3% unemployment rate, Naples is on the right track.

Click HERE to see the full report from Realtor.com.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

 source: Realtor.com

Those markets likely to see the biggest increase will likely be those markets hardest hit the last few years with foreclosures.

Housings rising affordability mixed with falling inventories of for-sale homes are the main factors driving the expected price increases, according to Fiserv.

Initially, investors are expected to help drive most of this price increase, and then followed by first-time and trade-up buyers as they re-emerge in bigger numbers to the market.

In Southwest Florida, according to the Naples Area Board of Realtors (NABOR) Q1 2012 Market Report, the median home price of homes in the $300K and under price point has risen by just under 4% compared to Q1 2011.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

Source: USA Today, NABOR

1. On average, a short sale approval can take 60-90 days. There could be mortgage insurance and an end investor on the loan as well as the servicer, which means it has to go through three different processes.  For example, Bank of America could be the servicer on the loan but they do not actually own the loan, so, the short sale has to pass their guidelines, then go to the mortgage insurer if there is one, then to the end investor like Fannie Mae and Freddie Mac. Approvals can come sooner than 60 days, but industry standard is at least 60 days to get an approval or denial.

2. You may not always be able to purchase a short sale for 40-50% under its listed price.  In a short sale, the bank comes out and does a valuation of the property and will expect a slight discount, but will not accept a huge amount under the market value. If your agent is experienced, he/she will have already gotten an approved list price from the bank by the time you are interested in making an offer. The bank will usually be willing to negotiate on that price, but will not, in almost every case, take 40-50% off of that price. To that point, you may be able to get a reasonable deal on a short sale, though it will not be, in most cases, as much of a deal as you may be able to get on an REO (foreclosed property).

3. Short sales are a very difficult process and it takes a qualified person to handle this type of transaction.  With this type of transaction it takes a very experienced agent on the listing side as well as the buying side. Make sure before you move forward on the transaction that the listing agent has ample experience dealing with these types of transactions, or you could be tied up in a contract for months that never goes to settlement. There are several different types of short sale processes and each bank’s process is somewhat different; it takes a professional who has had experience with all of these different types of short sales to help facilitate a successful transaction.

4. In most short sale transactions the properties are sold “as-is” and no repairs will be made.  Although there are some exceptions to this rule, speaking in general, short sales are sold “as-is” and no repairs will be made even if they are found during a home inspection. In most short sale transactions the bank will require both the buyer and the seller to sign an addendum that states the property is being sold “As-is” and no repairs will be made.

John R. Wood Realtor Agents are fully experienced in every type of transaction or sale.  If you’re looking for a short sale expert, please click HERE to find the right agent.

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

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Info Source: KCMblog.com

Reports of bidding wars are coming to the surface for some markets.  On a national level, vacation-home sales are perking up as low prices pull more buyers off the fence. However, buyers are looking for vacation homes closer than further away.

Near-record-low mortgage rates, bargain prices and dwindling home inventories are bringing some once-untouchable markets within reach for the first time in a decade, say housing-market experts.  Those factors are “creating a sense of urgency,” says Pam O’Connor, president of Leading Real Estate Companies of the World, a broker network. “People feel like they might miss this window.” (**John R. Wood Realtors is a member of Leading Real Estate Companies of the World.)

Sales of vacation properties fell 56% between 2006 and 2010, but climbed 7% in 2011 to 502,000, according to the most recent survey by the National Association of Realtors, a trade association. Yet prices remain soft; according to the NAR, the median price on vacation homes dropped more than 19% in 2011 to $121,300.

Cash sales dominate in some markets like Southwest Florida.

In Naples, Florida, the drop from peak prices has been 55%, but the market is forecasted to rise +1.3% per year.

Realtor Brenda Fioretti of Prudential Florida Realty says that about 70% of home sales in Naples are cash-only deals and that buyers are flocking to high-rise condominium buildings on the Gulf of Mexico. The number of properties on the market as of April 1, 2012 was the lowest in nine years.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

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**John R. Wood Realtors is proud to be part of the largest network of independent real estate brokers. As a member of RELO, the Wood firm specializes in satisfying the needs of people who are relocating or need real estate assistance across town or across country. RELO Independent Brokers sell more homes than any national franchise.

In its weekly mortgage market survey, Freddie Mac reported that “signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” says Frank Nothaft, Freddie Mac’s chief economist.

Based on their report, here is an overview for week-ending May 3:

•30-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.8 point, reaching a new historical low. The previous record for 30-year rates was 3.87 percent, which was set on Feb. 9 of this year. A year ago at this time, rates averaged 4.71 percent.

•15-year fixed-rate mortgages: averaged 3.07 percent, with an average 0.7 point, another historical low. The previous record for 15-year rates was 3.11 percent set on April 12 this year. A year ago at this time, 15-year rates had averaged 3.89 percent.

•5-year adjustable-rate mortgages: averaged 2.85 percent, with an average 0.7 point, holding the same as last week. Last year at this time, 5-year ARMs averaged 3.47 percent.

•1-year ARMs: averaged 2.70 percent this week, with an average 0.6 point, also registering at a new all-time low. Last year at this time, 1-year ARMs averaged 3.14 percent.

Are you ready to buy or sell in Southwest Florida?

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John R. Wood Realtors – The Symbol of Local Knowledge.

Home prices have fallen and mortgage rates are hovering near record lows, pushing home affordability for the average family to record highs. Meanwhile, rents have been on the rise, making owning a home cheaper than renting in most areas of the country, according to recent surveys. But these home prices won’t last for long, especially in key markets like Southwest Florida and Central Arizona.

Also contributing to this predicition are investors eyeing profits in rentals and snapping up bank-owned properties. Clear Capital’s Alex Villacorte attributes this as helping to lead to an increase in prices on foreclosed properties. This “could have a significant impact on the market overall in terms of providing a rising floor to home values,” Villacorte told CNNMoney.

Some areas are already seeing prices rise. In Phoenix, housing prices have already increased 8.4 percent during the three months ending April 30, and South Florida saw prices bump up 4.6 percent quarter over quarter, according to Clear Capital data.

If you want to buy, you want to act quickly because mortgage rates are expected to tick up slightly by the end of the year. The increase is being sparked by greater demand, says Doug Lebda, CEO of LendingTree. He predicts 30-year fixed-rate mortgages will inch up to 4.5 percent by the end of the year, which is still low, however, by historical standards.

The Mortgage Bankers Association is also predicting a big leap in mortgage loans next year. For this year, MBA estimates that buyers will take out loans totaling about $415 billion, but by 2013 that number is expected to nearly double to $706 billion.

Are you ready to buy or sell in Southwest Florida?

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John R. Wood Realtors – The Symbol of Local Knowledge.

Real estate is in recovery, locally and nationally, buyers have stepped up and prices are firming up, said Yun “Some of the hardest hit markets, including Naples, have been leaders in the recovery, he said. That has a lot do with their location. As you all know all real estate is local,” Yun said. “You can not pick it up and move it somewhere else.”

He predicted as much as a 10 percent appreciation in home prices by December in the Naples market over last year. While the markets in neighboring Lee County are recovering too, it’s not happening as fast because they saw more overbuilding during the boom years, Yun also said

Nationally, Yun said he expects home prices to increase by 1 to 3 percent by December. He expects increasing sales nationally, which he said could be boosted by 15 to 20 percent if banks just went back to using “normal underwriting standards,” instead of using such strict standards that are so limiting.

“This is not some wishful thinking,” Yun said, adding that he believed an over correction in the local market has pulled prices down too far.

In Collier County in the first quarter of 2012, pending sales increased 14 percent in the $300,000 to $500,000 market. They were up 29 percent in the $500,000 to $1 million market and rose 14 percent in the $1 million to $2 million market.

The median home price in the quarter increased 14 percent. The median is the price at which half the homes sell for more and half for less.

In addition to Yun, all speakers at the 2012 Economic Summit were optimistic about the real estate market in Southwest Florida.

Yun was just one of five speakers at the 2012 Economic Summit, a first-time event sponsored by the Naples Area Board of Realtors, or NABOR. The event, held at the Realtor association’s conference center off Pine Ridge Road, attracted a sell-out crowd of 250.”It sold out before we could even advertise it to our members,” said Brenda Fioretti, a Naples broker and NABOR spokeswoman.

The other speakers were John Tucillo, a chief economist with Florida Realtors, a statewide trade group; Shelton Weeks, a real estate professor and director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast Univesity, Doug Duncan, a vice president and chief economist for Fannie Mae, and Cindy Carroll, the vice president and manager of the residential division at Carroll & Carroll Real Estate Appraisers and Consultants in Naples. All of the speakers delivered a heavy dose of optimism about the real estate market in Southwest Florida.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.